Planning Contributions Supplementary Planning Document. November 2015

Transcription

1 Planning Contributions Supplementary Planning Document November

2 2

3 Development Contributions Programme Manager, Regeneration Delivery Team, 2 Hillman Street, Hackney E8 1FB 3

4 1. Introduction... 6 Purpose of the SPD... How to use this SPD... How the SPD is structured... Status of the SPD Policy Context... 8 National, Regional and Local policies... Community Infrastructure Levy Approach to Planning Contributions and CIL What will be funded by CILand s106 agreements? A Joined Up Approach Outline Planning Applications and Amendments... Drafting of Agreements... Monetary Contributions... Monitoring Fee... Viability... Undertaking Works vs. a Monetary Contribution Employment, Training, Town Centres and Enterprise Introduction... Context... Qualifying Development... Non-monetary Contributions... Monetary Contribution... Heads of terms and spending Planning Contributions Employment Land and Floorspace Provision Introduction... Context... Qualifying Development... Non-monetary Contributions... Monetary Contribution... Heads of terms and spending Planning Contributions Open Space, Children s Play and Recreational Facilities Introduction... Context... Qualifying Development... Non-Monetary Contributions... Monetary Contributions... Heads of terms and spending Planning Contributions Transport & Highways Improvements Introduction... Context... Qualifying Development... Non-Monetary Contributions... Monetary Contributions... Heads of terms and spending Planning Contributions Affordable Housing Introduction... Context... Qualifying Development... Non-Monetary Contributions... Monetary Contributions... 4

5 Heads of terms and spending Planning Contributions Sustainable Design and Construction Introduction... Context... Qualifying Development... Non Monetary Contributions... Monetary Contributions... Heads of terms and spending Planning Contributions Education and Library Facilities Introduction... Context... Qualifying Development... Non-Monetary Contribution... Monetary Contribution Education Facilities... Monetary Contribution Library Facilities... Heads of terms and spending Planning Contributions Healthcare Facilities Introduction... Context... Qualifying Development... Non Monetary Contributions... Monetary Contributions... Heads of terms and spending Planning Contributions Appendix 1 Household size by ward Appendix 2 Employment density by Use Class Appendix 3 Areas of Play Deficiency Appendix 4 Child Yields Appendix 5 Glossary of Terms

6 1. Introduction 1.1 This Supplementary Planning Document (SPD) sets out the Council s policy for securing Planning Contributions, from new developments that require planning permission. 1.2 Planning Contributions (sometimes referred to as planning obligations) are usually made under Section 106 (s106) of the Town Country Planning Act 1990 (as amended) and/or section 16 of the Greater London Council (General Powers) Act 1974 or any other enabling powers. Typically, these legally binding agreements are negotiated between the Local Planning Authority (LPA) (also referred to throughout as Hackney or the Council ) and applicants, in the context of planning applications. They are a mechanism by which measures are secured to make development acceptable, which would otherwise be unacceptable in planning terms. Planning Contributions can also be secured by developers entering into a unilateral undertaking. Any agreement or undertaking securing a Planning Contribution is henceforth known as a legal agreement unless otherwise stated. The legal agreement will be registered by the Council as a local land charge and by the land owner at the Land Registry. 1.3 Used properly, Planning Contributions enhance the quality of both the development and the wider environment, to help ensure that the development makes a positive contribution to the creation of a sustainable Hackney. This SPD is supplementary to the Hackney Core Strategy, and should be considered alongside the Hackney Development Management Local Plan (DMLP) and the Community Infrastructure Levy (CIL) Charging Schedule. The document forms part of the Hackney Local Development Framework (LDF) and will be a material consideration in the assessment of planning applications by the Council. Purpose of the SPD 1.4 This document details the Council s approach in securing Planning Contributions and how it will be implemented alongside the CIL. The SPD will provide clarity to developers, development management officers, stakeholders and local residents regarding the basis on which Planning Contributions will be sought. The SPD details the type of Planning Contributions that may be required, the qualifying development thresholds and the monetary contribution formulae where appropriate. 1.5 The SPD does not form an exhaustive list of every planning contribution which might be required in every case. There may be occasions when measures specific to an individual site are required to make a development acceptable in planning terms. Where a Planning contribution is deemed necessary to mitigate the impact of the development but is not contained within the SPD the relevant planning contributions, whether financial or in-kind, will be negotiated on a case by case basis. 6

7 How to use this SPD 1.6 The aims of the SPD are as follows Provide Council Planning Officers and applicants with a clear understanding of which infrastructure and/or programmes are to be funded through CIL vs a Planning Contribution; Provide a clear indication of the likely Planning Contributions different types of development are likely to attract early on in the Development Management process; and Where a monetary contribution is deemed as being acceptable in helping to mitigate the impacts of development, provide a formulaic approach to help guide the potential monetary contribution that should be attached to a development. The formulae provided are intended as the basis for negotiation. The exact Planning Contributions triggered by a development will be negotiated on a siteby-site basis. If more up to date, relevant and specific information is provided (and deemed appropriate by the Council) the Council may choose to use this information as a basis for a monetary contribution. How the SPD is structured 1.7 The first part of each chapter lists the key policy background for negotiating and implementing any relevant Planning Contributions and associated legal agreement. 1.8 The second part outlines the context which establishes the need and provides the evidence for requiring the respective Planning Contributions in Hackney. 1.9 Thirdly what types of development qualify for having to make a potential Planning Contribution is listed followed by when either a monetary or non-monetary contribution applies Finally the broad heads of terms for each Planning Contribution and how they are likely to be spent are outlined. Status of the SPD 1.11 The SPD has been prepared in accordance with the National Planning Policy Framework ( NPPF ) and the associated Town and Country Planning Act (Local Development) (England) Regulations 2010 and CIL Regulations (as amended) ( CIL Regulations ). The SPD is also in general conformity with the London Plan and assists in securing local, regional and national objectives for sustainable development across Hackney The Council intends that this SPD will set out the implications for Planning Contributions for the relevant topic-based policies (i.e. transport or open space) in the Core Strategy (CS), the Development Management Local Plan (DMLP) and other relevant guidance. 7

8 2. Policy Context National, Regional and Local policies 2.1 Government policy on the application and use of s106 agreements is contained within the CIL Regulations, CIL Guidance and the NPPF. Regulation 122 of the CIL Regulations placed into law for the first time the Government s policy tests on the use of s106 agreements. It is unlawful for a s106 agreement to be taken into account when determining a planning application for a development, if the obligation does not meet all of the following tests: (a) Necessary to make the development acceptable in planning terms; (b) Directly related to the development; and (c) Fairly and reasonably related in scale and kind to the development. 2.2 The NPPF states that local planning authorities should consider whether otherwise unacceptable development could be made acceptable through the use of conditions or planning obligations. Planning obligations should only be used where it is not possible to address unacceptable impacts through a planning condition. 2.3 The Mayoral CIL came into effect on 1st April It places a levy on most development in London to help provide funding contributions towards the cost of delivering the Crossrail project. 2.4 The London Plan Policy 8.2: Planning Obligations, sets out the Mayor s Strategic priorities for planning obligations. It places the highest importance on Affordable Housing, and on supporting the funding of Crossrail and other public transport improvements. 2.5 Hackney s Core Strategy is the primary strategic document in the Local Development Framework (LDF). It sets out a long term spatial vision and strategic objectives for future development in Hackney. 2.6 Within the LDF there are also a number of other policy documents which set out specific area based policies in the form of Area Action Plans (AAP). These include the Hackney Central AAP, the Dalston AAP, and the Manor House AAP. These documents provide the context and priorities in which Planning Contributions may be sought in these areas. 2.7 Policy DM4 of the Development Management Local Plan (DMLP) sets out the Council s approach to the application of CIL and Planning Contributions. The DMLP contains the development policies that elaborate the Core Strategy (CS). It forms the development plan which is used to determine planning applications, together with the London Plan, the Core Strategy, AAPs and other relevant SPDs. Community Infrastructure Levy 2.8 The CIL Regulations came into force on 6 April The legislation allows Local Authorities in England and Wales to collect and pool contributions from developers to help pay for infrastructure that is 8

9 necessary to support new development, such as; transport, community and leisure facilities, schools, and public open spaces. 2.9 Local authorities who wish to charge the levy must produce a charging schedule setting out CIL rates for their area Further information on Hackney s CIL is available on our web site at: 9

10 3. Approach to Planning Contributions and CIL What will be funded through CIL and s106 agreements? 3.1 While CIL will replace Planning Contributions as the primary mechanism to fund necessary infrastructure, Planning Contributions will still be required where development impacts social and community infrastructure and / or to mitigate matters that are specific to the site such as environmental improvement, traffic management and Affordable Housing. 3.2 CIL on the other hand will allow the authority to pool CIL receipts and then spend them according to the project and/or type of infrastructure required as a result of growth. Charging authorities (i.e. the Council) are advised to publish a list of the types of infrastructure and projects that they intend to fund through CIL and for which a s106 planning obligation cannot be used. This is known as the Regulation 123 List. 3.3 Once adopted the interaction of CIL and Planning Contributions in Hackney will be underpinned by the following general principles: Planning Contributions (secured through s106 agreement) will not be used to fund improvements included on the CIL Regulation 123 List (as amended). The Council has confirmed within its DCS that it will allow exceptional relief under Regulation 55 of the CIL Regulations. The granting of relief from CIL is at the Council s discretion and will only be agreed after rigorous analysis of the viability information for the development which must be submitted in full. The Council may only grant relief for exceptional circumstances if 1. A Legal agreement is entered into in respect of the planning permission which permits the development; and 2. The Council considers that to require payment of the CIL would have an unacceptable impact on the economic viability of the proposed development; and 3. It is satisfied that to grant relief would not constitute a State Aid which is required to be notified to and approved by the European Commission. 3.4 Under Regulation 55 the Council may seek a legal agreement in place of CIL in a limited number of instances (in addition to other potential funding streams under the Planning Contributions SPD) which may include the provision, improvement, replacement, operation or maintenance of new and existing infrastructure for education, libraries, and social care facilities. 3.5 The Regulation 123 List is posted on Hackney s website in accordance with relevant regulations and should be read alongside the Hackney CIL Charging Schedule see website: 10

11 4. Overview of Principles A Joined Up Approach 4.1 The Council will make it known to prospective developers the nature of the Planning Contribution(s) likely to be required as early as possible in the planning process. Negotiations for all Planning Contributions will be undertaken by a Council planning case officer, assisted where appropriate by officers representing the various Council service areas. 4.2 The Council expects the general extent of Planning Contributions to be determined at pre-application stage and explicit reference to the proposed Planning Contribution categories, contained within this SPD, to be submitted as supporting information with any planning application. 4.3 The proposed Heads of Terms will be considered together with all other material considerations when determining any planning application. Depending on the type of application this may be done by members of the planning sub-committee or senior officers under delegated powers. All completed legal agreements will be placed on the statutory planning register and will be made available online at Outline Planning Applications and Amendments 4.4 Planning Contributions will be sought at the outline planning application stage by inserting the relevant formula into the legal agreement. Applications to amend previously permitted schemes will also be subject to reassessment for Planning Contribution purposes. Proposals to renew an existing permission will also be reassessed for Planning Contributions. Drafting of Agreements 4.5 The developer will be required to pay the Council s reasonable legal and professional costs incurred in the preparation and completion of the agreement and/or unilateral agreement where appropriate. The legal costs are payable on the completion of the legal agreement. Monetary Contributions 4.6 All formulas associated with this SPD are current as of the 2015/2016 financial year. The monetary contributions sought from developers will be index linked in line with inflation and adjusted at the beginning of every financial year using the Retail Prices Index (or such other index as agreed). 4.7 Monetary contributions will normally be expected to be paid on or prior to the commencement of development. In exceptional circumstances and where the financial contributions are in excess of 500,000 the Council may consider phased payments on a case by case basis. 4.8 Infrastructure works, public realm works and works in kind directly associated with the development are normally required to have been 11

12 carried out prior to occupation. Where relevant, the expenditure of Planning Contributions may include design and procurement fees incurred as part of the project implementation. Monitoring Fees 4.9 Local Planning Authorities are able to recover the costs of administering monitoring and implementing the CIL charge and a separate charge will be made for the monitoring of legal agreements A fee will be charged for monitoring Planning Contributions (e.g., implementation, design, and monitoring/supervision costs) In addition to any legal fees, the monitoring fee is calculated on a per Head of Term basis which is: 500 per non-financial obligation; and 500 or 5% of the financial contribution, whichever value is greater but is to be capped at 5,000 per Head of Term, larger developments may be subject to additional monitoring fees, including phased development Where Planning Contributions require compliance checks, monitoring, project management and implementation through the Council and its service areas, then an appropriate project management cost is to be negotiated as part of the fee. Please see the relevant topic based chapters (Chapters 5 to 12) for further information on possible project management costs. For instance, specific monitoring and maintenance fees are set out for children s play facilities (paragraphs 7.28 to 7.29) and for Transport Assessments (paragraphs 8.25 to 8.27) Monitoring fees will be reviewed and amended at the start of every financial year. For exceptionally detailed agreements, (for example 8+ heads of terms, variations to existing agreements or those that are complex to monitor and implement) the Council may request a contribution above the monitoring charge outlined in Paragraph 4.11 above. The Council will also request a standard monitoring fee ( 500) for variations of existing agreements, subject to additional monitoring fees for any new planning contributions. Viability 4.14 Where a developer indicates that the cost of the Planning Contributions required by the Council may affect the viability of the scheme, and that this may mean that it cannot be delivered, the Council will require that the applicant provide a detailed open book breakdown of the development s financial information, including the cost of acquiring the land. It is the responsibility of applicants to factor in potential Planning Contributions, and site development costs, when acquiring land for development The Council may appoint a suitably qualified independent third party to assess the financial information submitted. If it is determined that a scheme is not viable with the present level of Planning Contributions, the 12

13 Planning Contributions triggered by the development will be renegotiated with the applicant based on the order of priority identified by the Council during negotiations. All costs incurred by the Council in validating viability claims will have to be met by the applicant. The legal agreement may contain inter-viability review mechanisms at the applicant s expense and at times agreed with the Council (e.g. when construction contracts have been agreed) to ascertain the extent, if at all, of Planning Contributions at a later date. The Council will require that a redacted valuation appraisal be placed on the Hackney planning register. Undertaking Works vs. a Monetary Contribution 4.16 Wherever possible, provision should be made on-site for facilities / infrastructure required through a Planning Contribution. The nature, scale, design and cost of works to be undertaken by the developer will be agreed with the Council There will be cases where it is neither practical nor appropriate to provide on-site contributions for the development to be acceptable in planning terms. In these instances, the Council will require a monetary contribution towards providing or contributing towards the provision of these facilities at an appropriate alternative location. The monetary contribution will be calculated using the formula provided for the relevant planning contribution in Chapters 5 to 12 of this SPD The issue of whether facilities are to be provided on or off-site will be considered by the Council on a case by case basis in accordance with relevant policies. 13

14 5. Employment, Training, Town Centres and Enterprise Introduction 5.1 The planning system plays an important role in building a strong economy, creating vibrant town centres and promoting social inclusion. New development creates employment and training opportunities through the various phases of development - demolition, construction and operational phases. These different phases of development open up job opportunities in construction and growth sectors for people who may otherwise find it difficult to access employment, and helping to bridge the identified skills gap. New business development can also benefit the local economy through the use of local shops, facilities and services. Crucially, in order to ensure that there is a supply of jobs in Hackney employment floorspace must be protected, including provision of affordable workspace so new business can grow and develop. 5.2 The Council s approach to the provision of employment and training initiatives is in accordance with the NPPF, the London Plan, the Hackney Core Strategy and the Hackney Development Management Local Plan. The NPPF requires planning to be pro-active in promoting sustainable economic growth in order to create jobs and prosperity. The London Plan Policy 4.12 Improving Opportunities for All, states that strategic development proposals should support local employment, skills development and training opportunities. 5.3 One of the six priorities of Hackney s Sustainable Communities Strategy (SCS) is to reduce poverty by supporting residents into sustainable employment, and promoting employment opportunities. This overarching objective is supported by the Core Strategy and the Development Management Local Plan, the relevant employment and training related policies include Core Strategy Policy 10 Lifelong Learning, stipulates working with key partners to bring formal learning facilities to vulnerable residents, especially workless families. Planning Contributions are identified as a means of assisting this; Core Strategy Policy 16 Employment Opportunities, confirms the Council will seek to address unemployment and facilitate access to jobs by promoting training opportunities for the local population, increasing the employment offer in Hackney and allocating land for employment purposes. NOTE policies specific to employment land are included in CS17 and CS18 which are dealt with in Chapter 5; and Development Management Policy 4 paragraph 3.58 Retention of Employment Land and Floorspace, confirms that the Council will seek through legal agreement the creation of employment and apprenticeship positions for Hackney residents during the construction phase and operation of development. 14

15 5.4 Hackney has experienced significant economic growth in recent years and yet levels of persistent worklessness and deprivation remain above the London average. This chapter focuses on the initiatives to address these issues and ensure that Hackney s growth is sustainable and brings benefits to the whole community. Table 2 - Key policies applicable to employment, training and local procurement London Plan Policy 4.12 Improving Opportunities for All Policy 7.2 An Inclusive Environment Hackney Core Strategy Policy CS10 Lifelong Learning Policy CS16 Employment Opportunities Hackney Development Management Local Plan Policy DM4 CIL & Planning Contributions Policy DM14 Retention of Employment Land and Floorspace Table 3 Key policies applicable to town centres and enterprise London Plan Hackney Core Strategy Hackney Development Management Local Policy 2.15 Town Centres Policy 2.11 Central Activities Zone: Strategic Functions Policy 4.6 Support for an Enhancement of Arts, Cultural, Sport and Entertainment Policy 4.9 Small Shops, Policy 7.3 Designing Out Crime Annex 2 London s Town Centre Network Policy CS13 Town Centres Policy 14 Street Markets Policy CS15 Evening and Night-Time Economy Policy CS24 Design Plan Policy DM6 Arts, Culture and Entertainment Facilities Policy DM8 Small and Independent Shops Policy DM9 Changing the Use of Shops in Town Centres Policy DM11 Evening and Night-Time Economy Uses Policy DM16 Affordable Workspace 15

16 5.5 The Core Strategy and Development Management Local Plan can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context Hackney s Population and Employment Characteristics 5.6 Hackney s population has grown significantly in the last ten years, with the 2011 Census showing a 20% increase. Much of this has been in those of working age particularly the age group. Significant growth has also occurred between the 2001 to 2011 census periods in those soon to be or recently of working age i.e year olds. 5.7 The increase in Hackney s working age population has set the backdrop for significant changes in Hackney s employment-related characteristics as follows: The labour force increased by 30% from 2001 to 2011; Between Hackney s employment rate increased by 20%; The number of highly skilled residents increased by 54% from ; and The number of businesses in Hackney has grown by 21% since 2004 to 12,150 firms (2012) which is nearly double London s rate of business growth at 12%. 5.8 Whilst the above trends are positive many businesses in growth industries such as the tech-related sector are small in size and therefore need further support to allow them to grow and become sustainable employers. Also despite these improvements in overall employment, unemployment in Hackney still remains significantly higher than both the regional and national averages. In addition, fewer people are economically active and the proportion of residents on key out of work benefits has remained fairly constant in recent years. The borough remains the second most deprived local authority in England based on the Government s Indices of Multiple Deprivation and all wards are in the top ten percent most deprived wards in the country Latest data suggests that Hackney s employment rate is 63.3%, over 6% lower than the London average and nearly 8% lower than the national average. The rate of unemployment stands at 11.5%, over 2% higher than the London rate and nearly 4% higher than the national rate 2. Promoting Employment and Training 16

17 5.10 Promoting economic and social inclusion in Hackney is a major priority for the Council and the wider sub-region. For this reason there is a need to improve the supply of appropriate local jobs 3 in parallel with labour market and other training initiatives to raise the skills of residents so that they can access jobs in Hackney and beyond. The six Growth Boroughs (former Olympic host-boroughs) are working in partnership to deliver the Convergence Agenda, thereby closing the gap in performance and prospects between the wealthiest and poorest communities Ways Into Work is the Council s strategic approach to addressing worklessness. It is built around partnership working with a range of internal and external partners to deliver job brokerage and employability support to residents, a free recruitment service to Hackney businesses and a single point of access joining up employment support services throughout Hackney. Ways Into Work operates alongside the other five Growth Boroughs (former Olympic boroughs) and London Legacy Development Corporation (LLDC) to deliver training and employment opportunities. Town Centres and Enterprise 5.12 Hackney s town centres 4 and the Central Activities Zone (CAZ) are experiencing increasing development pressure including pressure resulting from the Night Time Economy (NTE). Whist the growth is positive in helping bring new investment and contributing to a mix of uses and services offered; it also increases the costs associated in managing these locations effectively in response to a larger resident population and increases in business and leisure uses The ongoing management of town centres and facilitation of enterprise activities is crucial to the long term improvement, vibrancy and vitality of these key areas within the borough. Affordability is a key concern for small enterprises in Hackney, including small and independent retailers. The borough has many small and independent shops which contributes to Hackney s special character, identity and distinctiveness. Through Planning Contributions the Council will seek to protect and enhance affordable shop units suitable for small and independent shops. The council will also offer business support and promote town centre management initiatives. Qualifying Development Employment & Training 1 (Source: 2 Hackney s Facts & Figures April 2014 at 3 A job is defined as a position that runs for at least 13 weeks of continuous employment 4 Town Centres are defined on the DMLP Policies Map. A copy of the Policies Map is available at: 17

18 5.14 Planning contributions toward the employment and training of local people during demolition, construction and end-use (operational) development will be required from: Residential development of 10 or more units or over 1,000 sqm in floorspace; Commercial development with floor space of over 1,000 sqm; and Development which will employ 10 or more people either at construction / demolition and/or operational use phase(s). Town Centres & Enterprise 5.15 Planning contributions toward town centre and enterprise will be required from: Development located within a designated town centre or the CAZ (as shown on the Hackney Policies Map 4 ); and NTE development located anywhere in the borough where - o It is not possible to secure mitigation works through condition meaning there are likely to be impacts associated with managing the town centre and/or local NTE, i.e. where community safety mitigation measures are required off site, waste collection; etc. o The use is for a new food, drink, night club or late night entertainment and leisure use open after 23:00; or o Existing development is subject to an application to extend opening hours for food, drink and late night entertainment and leisure use after 23:00. Non-Monetary Contributions Employment Training & Skills Plan 5.16 All qualifying development schemes are expected to produce an Employment and Skills Plan to be approved by the Economic Development team prior to implementation. The Plan will involve a meeting with Hackney Council at pre-application stage to discuss the Employment and Skills Plan The objective of the Employment and Skills Plan is to ensure that the employment, skills and training obligations agreed as part of the legal agreement are delivered and that the opportunities are available to Hackney residents, particularly those out of work. Ways into Work, the Council s job brokerage service, will work with the developer and its contractors to support the delivery of this objective The Employment and Skills Plan will include information regarding the positive socio-economic outputs the development will endeavour to deliver, for example undertaking to: work collaboratively with local 18

19 schools and universities; participate in job fairs and recruitment events; ensure health and safety in the vicinity of the development site; and promote careers in construction and with the end users of the development following construction. Employment and Training - Construction Phase 5.19 In order to support local businesses in benefiting from new development within the borough, the Council will require a commitment from developers to engage local businesses through the supply chain and local labour. Developers and their supply chain are expected to work with the Economic Development team to have an active programme for recruiting and retaining the following during the demolition and construction phase of development, and the following minimum thresholds are required: Procurement Plan - for all contracts with a value in excess of 5 million the owner/developer must agree to engage with local suppliers directly and must supply the Council s Economic Development team with a full Procurement Plan identifying the services and materials that will be sourced for the lifetime of the project and the location of the suppliers they have been sourced from; Local Labour - the Council will seek to ensure that the owner/developer (and their agent s employees, contractors and sub-contractors) uses all reasonable endeavours to secure a minimum of 30% of the workforce as Local Labour 5 during the construction and demolition phase. Local labour during demolition and construction of the entire development can also include, for example, onsite security, facilities management and administration. The Council requires quarterly labour returns to be provided by the owner/developer to demonstrate that local labour commitments are being met. Developers and contractors will pay at least the minimum wage, and are encouraged to become London Living Wage employers; Apprenticeships - apprentices 6 (residents of Hackney) in the various building trades such as brick laying, carpentry, electrical, plumbing and plastering and the new methods of construction. At least one full framework apprentice is to be employed per 2 Million of construction contract value, if the development can sustain one, otherwise an equivalent number if a shared apprenticeship model is offered. 5 Local labour is defined as any person or persons aged 18 years or over who is a resident in Hackney 6 A young person aged 16 years or over who is undertaking on-the job training and who is also studying for a nationally recognised qualification or an NVQ in one of the building trades such as electrical, brick laying, plastering, plumbing and carpentry 19

20 A support fee of 1,500 per apprentice placement will also be payable in order to cover; pre-employment, recruitment process, post-employment mentoring and support; and If the length of the build/project does not allow for an apprenticeship placement, and it can be demonstrated that all reasonable endeavours have been undertaken to deliver the apprenticeship, a 7,000 fee per apprentice will be payable to allow for the creation of alternative training opportunities elsewhere in the borough. Employment and Training Operational (End Use) Phase 5.20 All vacancies for employees, self-employed, sub-contractors and any other types of employment or training arising from the operational phase of the development (first five years) should be set out in the Employment and Skills Plan. Where the operational use occupier is not known, the Council will seek an agreement to ensure that its aims and objectives in terms of employment and skills are promoted, by brokering a meeting between the new occupier once known and the Council. A commitment to do this will be included in the Employment and Skills Plan Non-monetary contributions towards employment and training initiatives will be identified specific to each development through an Employment and Skills Plan worked up with the Council s Economic Development team. The Council will seek to ensure that the owner/developer (and their agent s employee s contractors and sub-contractors) use all reasonable endeavours to secure a minimum of 30% of the workforce as Local Labour 7 during the operational phase up to five years from the first occupation of the final significant commercial unit forming part of the Development (or phase of the Development as the case may be). The Council requires quarterly labour returns to be provided by the owner/developer to demonstrate that the local labour commitments are being met. Operational use owners will pay at least the minimum wage, and are encouraged to adopt the London Living Wage initiative. Training Facilities 5.22 In some circumstances, particularly in the case of larger developments, it may be appropriate to incorporate in-house training facilities/premises and/or an embedded employment coordinator as part of the development and for operational phases This will be negotiated on a case by case basis between the owner/developer and the Council in conjunction with the Economic Development team. Incorporation of training facilities should be implemented either by the individual developer, or if not viable, in partnership with other local developments facilitated by the Economic Development team Hackney is an approved Construction Industry Training Board (CITB) Construction National Skills Academy (NSA). The Council require that developers join its NSA programme and use reasonable endeavours to 7 Any person or persons aged 18 years or over who is a resident in Hackney 20

21 contribute as appropriate towards delivering its objective of improving skills within the industry. Town Centres & Enterprise 5.25 To support enterprise and growth activities in town centres and growth sectors, in recognition of the key role played by small and independent retail units, markets and the temporary use of vacant space in offering a choice of goods and services for local people and employment opportunities through new retail businesses the following non-monetary obligations may be sought: The provision of, business support, small and independent shops, affordable retail space and the use of temporary space.; and The provision of affordable shop units in all town centres and the CAZ from retail developments of 1,000sqm and over, equivalent to at least 10% of the total amount of proposed retail floor space. Monetary Contributions Employment and Training Construction Phase 5.26 A monetary contribution for construction training, employment support and local procurement to enhance the prospects of the use of local employment in the construction phase of development will be sought. The following formula will be used to calculate this monetary contribution: Cost of training and support per person ( 4,850) (1) X Gross Internal Area (sqm) /1000 (2) Employment and Training Operational (End Use) Phase 5.27 A monetary contribution for operational training, employment support and local procurement to enhance the prospects of the use of local employment in the operational phase of development will be sought. The following formula will be used to calculate this monetary contribution: Cost of training and support per person ( 4,850) (1) X Employee yield of the development (3) X Employees resident in Hackney (33% or 0.33)) (4) X Employees in Hackney requiring training & support (37% or 0.37) (5) Notes: 21

22 1. 4,850 is the cost of training, preparing and placing a long term unemployed person into sustainable employment paid by the DWP to its suppliers. Hackney has chosen the cost profile for the JSA 25+ group as a representative cost which is at the lower end of the cost spectrum. For further information please refer to 2. The formula is divided by 1000 given that 1000sqm represents a major development in floorspace terms. 3. Hackney s Employment Growth Option Study 2010 which is part of the evidence base underpinning Hackney s adopted Core Strategy used an employment density for B1 offices of 1 person per 19sqm. A copy of this study can be downloaded from the Council s website at: yment_growth_options_study.pdf. For non-office development the employee yield is to be calculated using the HCA Employment Densities Guide. 2nd Edition 2010 and which is reproduced in Appendix 2 of this SPD. 4. In 2001 there were 78,959 employed people living in Hackney. Of these, 25,642 (33%) were also working in Hackney. 5. According to Annual Population Survey 2011, 63% of Hackney s working-age adults were employed meaning 37% are not in employment and are likely to be in need of further training to access the job market All monetary contributions will be used for, but not limited to, activity that supports the provision and delivery of: apprenticeships, skills training, employment support, job brokerage and work placements; local labour programmes, supply chain management and programmes aimed at assisting SMEs. The overriding aim is to train local people and support them into sustainable employment pathways. Town Centres & Enterprise 5.29 To support enterprise and growth activities in town centres and growth sectors, the following Planning Contributions may be sought: 5.30 Town centre management 8 and enterprise - contributions may be sought for town centre management and enterprise activities for example, community events, place marketing, and other business support initiatives. Activities associated with town centre management are generally operational but in some instances may include minor infrastructure works such as, the installation of lighting and CCTV. The size of the monetary contribution required to mitigate the community safety and amenity impacts of a development will be determined through 8 Town Centre Management is defined in Hackney s Core Strategy available at: Dec2010-low-res.pdf 22

23 negotiation, on a site by site basis, between the developer and the Council and will reflect the size and nature of the proposed use and/or impact of a change in opening hours Night time economy contributions - some NTE uses located in or outside the town centre may have considerable community safety and amenity impacts requiring mitigation through a relevant planning contribution. The size of the monetary contribution required to mitigate the community safety and amenity impacts of a development will be determined through negotiation, on a site by site basis, between the developer and the Council and will reflect the size and nature of the proposed use and/or impact of a change in opening hours Public realm - any necessary infrastructure works associated with the public realm / highways will be subject to Planning Contributions outlined in Chapter 8 of this SPD Affordable Retail - in order to maintain and encourage a balance of different types of shops which service local communities, and support successful and diverse town centres, the Council may expect contributions to support activities such as the provision of small independent shops, markets and temporary use of space. In exceptional circumstances where this cannot be provided onsite, contributions may be sought for off-site provision. Table 4 - Summary of applicable Planning Contributions for employment, training and local procurement Phase Non-Monetary Monetary Employment and Skills Construction and Demolition Operational Plan 30% Local Labour throughout construction/demolition phase 1 Apprentice for every 2m of construction contract value Quarterly Labour returns for construction phase Commitment to engage with local businesses through the supply chain for contracts over 5 million Employment and Skills Plan 30% Local Labour for first five years of operational phase(s) Quarterly Labour returns Cost of training and support per person ( 4,850) X (Gross Internal Area (sqm)/1000) A support fee of 1,500 per apprentice placement Cost of training and support per person ( 4,850) X Employee yield of the development 23

24 through 5 year period X Employees resident in Hackney X Employees in Hackney requiring training & support In the event that the number of required apprenticeships are not supplied the sum of 7000 will be payable to enable the Council to deliver placements elsewhere. Table 5 - Summary of applicable Planning Contributions for Town Centres & Enterprise Non-Monetary Contributions Monetary Contributions Town centre management and enterprise contributions Business support, support to Employment and floorspace markets provision Community safety initiatives, Provision of small and CCTV installation and independent shops, use of monitoring, community safety temporary space wardens Signage and lighting Night time economy contributions. Heads of terms and spending Planning Contributions 5.34 Contributions secured through legal agreement to support local labour, procurement and town centre initiatives may include, but are not limited to: 5.35 Local labour and Procurement: Operational training, employment support and local procurement Employment and Skills Plan 30% Local Labour throughout construction/demolition phase 1 Apprentice for every 2m of construction contract value Quarterly Labour returns for all phases of development Commitment to engage with local businesses through the supply chain 30% Local Labour for first five years of operational phase(s) Quarterly Labour returns through 5 year period Support fee of 1500 per apprentice Commitment to joining the Council s National Skills Academy 24

25 5.36 Town Centre Initiatives: Provision of small and independent shops Affordable (A1) retail space provision Use of temporary space Town centre management and enterprise contributions Business support Support to markets Community safety initiatives CCTV installation and monitoring Community safety wardens 25

26 6. Employment Land and Floorspace Provision Introduction 6.1 This chapter relates to mitigation where development is deemed acceptable to grant planning permission due to wider regeneration benefits but the scheme proposes either a net loss of employment land / floorspace or alternatively an under provision based on the employment potential of the site. 6.2 The policies below aim to protect and where possible increase employment floorspace provision meaning many schemes are likely to be refused planning permission should these policies not be met. This is especially so in Priority Employment Areas (PEAs) and Locally Significant Industrial Land (LSIS), which are the Council s core reservoir of employment land. Only when material considerations are judged to be exceptional (circumstances) will on-site provision be waived in lieu of a monetary contribution. Table 6 - A summary of the key policies applicable to employment land and floorspace provision London Plan Policy 2.10 and 2.11 Central Activities Zone Policy 2.13 Opportunity Areas and Intensification Areas Policy 4.1 Developing London s Economy Policy 4.2 Offices Hackney Core Strategy Policy CS17 Economic Development Policy CS18 - Promoting Employment Land Hackney Development Management Plan Local Policy DM4 CIL & Planning Contributions Policy DM14 Retention of Employment Land and Floorspace Policy DM15 New Business Floorspace Policy DM16 Affordable Workspace Policy DM17 Development Proposals in PEAs 6.3 For further details the CS and DMLP can be downloaded from the Council s website via the following links 26

27 Core Strategy Development Management Local Plan Context Demand for employment floorspace 6.4 Between 2004 and 2009, the growth rate for businesses in Hackney (21%) was nearly twice that of London (12%). Hackney s demand for office space broadly reflects the need for small, affordable space with a package of amenities. Between 2004 and 2012, 48% of Hackney s demand for office space was for property under 1,000sqft. Another 20% of demand during this period came from office space between 1,000-2,500 sqft. This means nearly 70% of Hackney s office demand has been for small offices under 2,500sqft. This demand has remained roughly stable during the recession. In addition Hackney s inward investment statistics demonstrate a 74% increase in demand for spaces between 2,500sqft and 5,000 sqft between 2006 and Supply of employment floorspace 6.5 Hackney s PEAs and LSIS represent Hackney s core reservoir of employment land. They are extremely tightly drawn clusters covering only approximately 6% of the Hackney s total land mass meaning it s vital they are protected. PEAs also cover the Central Activity Zone (CAZ) and much of the Tech City Opportunity Area Planning Framework (OAPF) boundary as well as a number of smaller areas in the north of the borough. 6.6 Protecting the employment character and function of PEAs / LSIS is particularly important in Hackney given its location adjoining the City of London which makes it a prime location for business growth. This is evidenced by the strong demand figures outlined above. A large part of Hackney s southern boundary with the City is within the CAZ, as designated by the London Plan and Hackney s CS. The CAZ generates thousands of jobs in financial, business and related services like IT and is crucial to the prosperity of London. In addition to the CAZ designation, Hackney s City Fringe (which incorporates Shoreditch and now extended to include Dalston and Hackney Central), has also been designated an Opportunity Area (OA). It has the capacity for significant development to generate new jobs and has seen a considerable growth in the creative industries including the Tech City, a nationally recognised hub for startups and established digital technology companies. 6.7 The importance of the CAZ and enlarged City Fringe / Tech City OAPF boundary has been recognised by the Government; these areas have been granted exemption from the new permitted development rights, which came into force in May 2013, which allow a change of use from offices to residential units without the need to apply for planning permission. The exemption area also covers many of Hackney s designated PEAs in the south of the borough. This underlines the 27

28 importance of the CAZ and wider City Fringe / Tech City OAPF boundary to the London economy and job opportunities in Hackney. The exemption area is included on Hackney s DMLP Policies Map which can be viewed at Policies-Map.pdf. 6.8 The PEAs located elsewhere in Hackney, while not currently exempt from the recent changes to permitted development rights, still provide vital space for small and medium sized companies. While most of the development pressure in the exemption area is for B1 office space, including as part of mixed used development, the PEAs in the north of Hackney provide a mix of B2 and B8 floorspace alongside B Hackney s Local Plan policies as referenced in paragraphs 6.1 to 6.4, prioritise B1, B2 and B8 uses in PEAs and LSIS Hackney s Planning Contributions requirements are in addition to Mayoral s106 requirements towards Crossrail which are required from office, retail and hotel development in Hackney s CAZ area. Further information is outlined in the London Plan Supplementary Planning Guidance on Use of planning obligations in the funding of Crossrail. These requirements have been taken into account as part of Hackney s CIL Charging Schedule. Qualifying Development 6.11 Planning Contributions will be sought in the following areas where the employment floorspace proposed is less than that which currently exists onsite. The applicable sites include existing non-designated employment land / floorspace located anywhere in the borough; as well as the PEAs of Belfast Road, Theydon Road, Red Square, Prout Road, Hackney Downs, Shacklewell or Anton Street. As a guide, the minimum contributions sought, subject to viability, should be based on the difference in existing employment generating floorspace 12 (in sqm) and the proposed amount of B1, B2 and B8 floorspace Planning Contributions will be sought from any development located on Article 1(6A) 9 land as defined under the Town and Country Planning (General Permitted Development) (Amendment) (England) Order 1995 (as amended) ( GPDO ), which is deemed to not maximise the employment generating 10 potential of the site in accordance with DMLP policies DM14 and DM17. Many of these areas are typically redeveloped at much higher densities to existing development and are therefore expected to increase the amount of employment generating floorspace onsite as part of any redevelopment. Where a significant uplift in employment floorspace is not achieved a financial contribution will be sought where the majority of the floorspace is not provided as employment. To calculate the amount of shortfall to use in the below formulae, a comparison will be made between what 50% (at a minimum 9 Article 1(6A) land is shown on Figure 1 of the DMLP which can be viewed at Employment generating use is defined in Hackney Core Strategy as including B1, B2, B8, C1 and D1 use classes. A1 can also be considered as an employment generating use but only when part of a development that also includes one or more of the uses mentioned previously (B1, B2, B8, C1, D1). 28

29 but may be higher based on individual site characteristics) of the proposed development s total floorspace would equate to compared to what has actually been provided as either B1, B2 or B8 floorspace. Non-monetary Contributions 6.13 The preference is for employment floorspace to be provided on site in accordance with adopted CS policy and DMLP and Sites Allocations Local Plan (SALP) policies. In addition AAP policies also apply in Dalston, Hackney Central and Manor House. The AAP boundaries are set out in the DMLP Policies Map Affordable workspace should be provided in accordance with DM16 which requires that 10% of new floorspace within major development schemes in the boroughs designated employment areas, be affordable workspace. This space should be secured through a legal agreement for use by a registered workspace provider. In exceptional circumstances where affordable workspace cannot be provided onsite, contributions may be sought in lieu of on-site provision. A list of the Council s registered workspace providers can be found on the Council s web site at: Where a development triggers the requirement for a monetary contribution, this may be reduced where the applicant is proposing to provide Affordable Workspace in accordance with the requirements of DM16. Monetary Contributions 6.16 The following formula will be used for calculating any monetary contribution in relation to employment land and floorspace provision The first step to completing the formula is to equate the amount of employment floorspace under provision to the amount of potential jobs lost. In accordance with paragraphs 6.11 and 6.12, under provision is calculated in two ways depending on the location of the proposed development: For existing non-designated employment land or northern PEAs: under provision is calculated based on the difference in sqm between the proposed amount of B1, B2 or B8 floorspace compared to the existing amount of employment generating floorspace (B1, B2, B8, C1, D1 and A1 use classes) on site. For Article 1(6A) land: under provision calculated based on (as a minimum) the difference between what 50% of the total proposed floorspace across all land use would equate to compared to the amount of B1, B2 or B8 floorspace proposed. 29

30 6.18 The amount of under provision in square metres is then multiplied by the average percentage of employees who live and work in the Borough to ensure the formulae relates to the amount of jobs lost that otherwise would have been taken up by Hackney residents. The second step is to use the average cost of getting someone into full-time employment. To complete the formulae steps 1 and 2 are multiplied together to give the required monetary contribution The below figures will be updated regularly to reflect changing costs and in accordance with future releases of census data. (Jobs lost) x (cost to provide training per employee) = monetary contribution Step 1: Firstly determine any loss or under provision of B1, B2 and B8 floorspace in accordance with paragraphs 6.11, 6.12 and Secondly express the loss / under provision of B1, B2 and B8 floorspace in terms of jobs lost as follow: Jobs lost = (gross employment floorspace lost or underprovided) / (average space requirement per employee equating to 1 employee per 19sqm (1)) x Employees resident in Hackney (33% or 0.33) (2) Step 2: Cost to provide training per employee (3) = 4,850 Final Step: Full time jobs lost x 4,850 = monetary contribution Notes - 1. Hackney s Employment Growth Option Study 2010 which is part of the evidence base underpinning Hackney s adopted Core Strategy used an employment density for B1 offices of 1 person per 19sqm. A copy of this study can be downloaded from the Council s website at: ent_growth_options_study.pdf. For non-office development the employee yield is to be calculated using the HCA Employment Densities Guide. 2nd Edition 2010 and which is reproduced in Appendix 2 of this SPD. 2. In 2001 there were 78,959 employed people living in Hackney. Of these, 25,642 (33%) were also working in Hackney. 3. 4,850 is the cost of training, preparing and placing a long term unemployed person into sustainable employment paid by the DWP to its suppliers. Hackney has chosen the cost profile for the 30

31 JSA 25+ group as a representative cost which is at the lower end of the cost spectrum. For further information please refer to Heads of terms and spending Planning Contributions 6.20 Should a monetary contribution be considered acceptable it may be used for, but is not limited to: constructing new employment premises; refurbishing existing employment premises; promoting the growth of key priority sectors for London; provision of workspace that is affordable and/or incubator units; or business support In securing high quality and successful employment generating floor space, the Council supports joint ventures with specialist agencies (managed workspace providers) working in Hackney to create, operate and manage workspace in a commercial context. This is particularly beneficial if such partnerships are formed in the early stages of the development process. 31

32 7. Open Space, Children s Play and Recreational Facilities Introduction 7.1 Access to well-planned and maintained open space, children s play areas and recreational facilities form an important role in promoting sustainable communities. The Council views such provision, in conjunction with participation in sport and physical activity, as important to people s physical, mental and social wellbeing; all of which are characteristics of thriving and healthy communities, as envisaged within Hackney s Sustainable Community Strategy. Table 7 - Summary of the key policies applicable to open space, children s play and recreational facilities London Plan Hackney Core Strategy Hackney Development Management Plan Local Policy 2.18 Green Infrastructure The Multi- Functional Network of Green and Open Spaces Policy CS26 Open Space Network Policy DM31 Open Space and Living Roofs Policy DM32 Protection and Enhancement of Existing Open Space and the Lee Valley Regional Park 7.2 The CS and DMLP can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context 7.3 New development, both residential and commercial, can increase the demand for the use of public open spaces and recreational facilities. It is important that they contribute to ensure existing spaces are enhanced and new spaces created consistent with demand, which is the essence of the above mentioned national, regional and local policies. 7.4 Hackney is expected to experience further population growth of an additional 70,000 persons between 2011 and Given Hackney is already one of the most densely populated boroughs in London, the 32

33 ability to provide new open space is limited meaning existing open space will come under increasing pressure. Hackney s Open Space Study and Sports Assessment commissioned in 2005, undertook an audit of open space provision in Hackney and listed a number of areas of deficiency. Notwithstanding that significant improvements to opens spaces have been made since the study was completed, it identified that an additional 55.2ha of small local parks, 54.3ha of local parks and 24.6ha of District Parks would be required in order to meet the needs of the whole borough. 7.5 The study also identified a deficiency in the provision of children s play space and sport and recreation facilities in the borough. There are significant areas within Hackney where open spaces are not provided with dedicated children s play areas within 400m and the provision of outdoor recreational facilities, namely outdoor playing pitches and indoor recreational facilities are below national standards. In order to ameliorate these deficiencies, access to both formal and informal children s play areas and recreational facilities should be increased. 7.6 In order to respond to these deficiencies and likely increased pressure from future population growth, new developments will need to provide new open space and child play provision on site, in accordance with the policy outlined above where this is possible. Where it is not possible for these facilities to be provided on-site as part of development, a Planning Contribution will be required to help increase the quality and capacity of existing open space located nearby. Qualifying Development 7.7 Generally, development that fails to meet CS and DMLP policies in relation to open space, children s play and recreational facilities, will be refused planning permission unless exceptional circumstances apply. For instance, any development which proposes the loss of designated open space will likely be refused planning permission in accordance with policies CS26 and DM Development on Amenity Green Space 11 will only be permitted where the requirements of policy CS 26 are met. Should the principle of development be acceptable, a monetary contribution may be negotiated using the formula below in lieu of onsite improvement works to achieve CS26 requirements. 7.9 A Planning Contribution towards open space, children s play 12 and recreational facilities will likely be sought, in accordance with DM31, where Residential development comprises 10 or more residential units; 11 As defined in the Core Strategy as informal recreational spaces and housing green spaces. This category would include green spaces in and around housing areas, in housing estates and in mixed use development, large landscaped areas and domestic gardens. 12 A monetary contribution will be sought where no on-site provision for child s play space is proposed and the site is located within a child s play space deficiency area as outlined in Appendix 1. 33

34 Commercial development 13 (i.e. office, retail and leisure) comprises more than 1000sqm of floorspace; or Specialist housing types, such as supported housing schemes, hostels, HMOs, hotels, apartment hotels or student housing developments, and new social and community facilities are provided. Non-Monetary Contributions Designated Open Space 7.10 No monetary contribution will be sought in relation to open space designated on the DMLP Policies Map where the requirements of CS26 and DM31 are met and any necessary improvement works are completed on site as part of the development. On site communal amenity open space and living roofs 7.11 No monetary contribution will be sought where a development proposal includes on site open space provision in accordance with DM31. Children s Play: 7.12 No monetary contribution will be sought where a qualifying residential development includes on site children s play provision. 10sqm per child is used as a guide in the London Mayor s Shaping Neighbourhoods: Play and Informal Recreation SPG. While this benchmark is supported it will be extremely difficult to meet this standard in addition to 10sqm of open space provision per resident required under DM31, especially in a dense urban environment such as Hackney. For this reason the 10sqm open space provision per resident is to include children s play facilities. To aid in working out the applicable on-site provision, reference should be made to the tool found on the Mayor of London s website at: The space is to be of high quality and on-going maintenance is to be undertaken by the landowner or onsite management company as appropriate, unless Hackney s Parks Department has agreed to take on this function by way of a Planning Contribution As outlined in the Mayor s Shaping Neighbourhoods SPG this space must be able to be used unrestricted during reasonable operating hours to children resident in the new development and provide a range of formal and informal play space suitable for a cross section of ages. Monetary Contributions 7.15 The Council s preference is for open space and children s play provision to be provided on-site as outlined in the preceding section. Off-site provision may be considered where it is deemed to be comparable in terms of quality and in terms of serving the needs of the development and the local community compared to on-site provision. A monetary 13 Commercial development will not generate a child yield so will not be required to make a financial contribution to children s play facilities 34

35 contribution may also be considered where the size of the scheme and the child yield cannot sustain a viable children s play area and or open space as outlined below. Designated Open Space 7.16 Any development which results in the loss of, or reduction in, the overall quality of Designated Open Space will likely be refused planning permission. This effectively means a monetary contribution is unlikely to be considered a means of mitigating the impact of a development affecting Designated Open Space (as shown on the DMLP Policies Map). On-site communal amenity open space and living roofs 7.17 In order to calculate a monetary contribution for the provision of communal amenity open space and living roofs, an appropriate monetary value needs to be calculated for providing new and/or improving existing open space Hackney Leisure and Green Spaces commissioned an independent landscape architect to calculate the cost for the development of a new 2 hectare local park as defined in the Open space hierarchy for London in the London Plan of Consequently, a model public open space of 2 hectares containing the features below has been created: Remediated soils, assuming a polluted brownfield site A drainage system A boundary railing and gates A footpath network A central paved area An area for a playground with a boundary fence and gate (playground not costed) Street furniture benches, bins etc. A water feature CCTV Pop-up power and water for events and maintenance Grass seeding Shrub and herbaceous planting Tree planting 7.19 Capital costs are based on typical industry rates at Landscape Institute 14 Stage C (Design). Annual management and maintenance costs for the above have also been included. Management and maintenance costs are based on current prevailing industry rates for the maintenance of a site of a similar size and have been calculated for a ten year period. Costs are subject to an annual uplift through inflation using the RICS indices: 14 Professional body for landscape architects 35

36 1,262,746 capital cost of new 2Ha park 1,032,450 ten years maintenance of park The sum of which totals 2,295,196 for capital and maintenance cost Which equates to per sqm for a new park and ten years maintenance (using 2ha park size) Given DM31 requires each resident to have access to 10sqm of open space while each employee is to have 4sqm, the formula to be used to calculate any monetary contribution towards open space & living roof provision is: (On Site Open Space Requirement) MINUS (On-Site Open Space Provided MULTIPLIED (by cost per square metre [ sqm]) For residential development: Step 1: Multiply the residential yield of the development by the 10sqm per resident requirement to determine the on-site open space requirement The residential yield of a development is to be calculated using the average household size for the relevant ward identified in the 2011 Census included as Appendix 1. Step 2: Calculate how much communal amenity open space (sqm) is proposed onsite Step 3: Minus the Step 2 result from the Step 1 result to determine the amount (sqm) of under provision on-site and multiply by to determine the monetary contribution. For commercial/ employment / leisure development: Step 1: Multiply the employment density of the development by the 4sqm per employee requirement to determine the on-site open space requirement The employment density of new development is to be calculated using the employment densities by use class included as Appendix 2. Step 2: Calculate how much communal amenity open space (sqm) is proposed onsite Step 3: 36

37 Minus the Step 2 result from the Step 1 result to determine the amount (sqm) of under provision on-site and multiply by to determine the monetary contribution. For specialist housing types, such as supported housing schemes, hostels, HMOs, hotels, or student housing developments: No standard formulae subject to negotiation on a case by case basis A combination of the above formulae is to be applied to mixed use development. For example the formula for residential development is to be applied to the residential floorspace in a mixed use scheme, the commercial development formula to the commercial floorspace and so on. Children s Play: 7.22 In accordance with DM31, new qualifying development is to include 10sqm of open space per person which is to incorporate provision for children s play facilities. This requirement is to be applied in conjunction with the monetary contribution for open space outlined above A monetary contribution will be sought where no on-site provision for child s play space is proposed and the site is located within a child s play space deficiency area as outlined in Appendix If open space has been provided on site to an acceptable level (i.e. has not attracted a monetary contribution) but that space is deemed as inappropriate for formal child play space due to either design or space constraints, a discounted contribution set at 50% of the monetary contribution outlined below will be taken per child expected to be resident in the development. The rate is reduced in recognition of the development at least providing open space on site which can be used for informal play purposes Where the development is not providing adequate open space and has been subject to a monetary contribution for open space provision as outlined above, a further contribution towards child s play space should be sought based on the shortfall of on-site provision. As a starting point, calculating any shortfall should be based on 10sqm of play space per child which can be calculated using the Excel tool found on the Mayor of London s website at: The cost of building and maintaining children s play space has been calculated based on recent projects delivered in the borough. The total applicable cost are made up of 3 components building the play facilities, average annual repair costs and finally a maintenance fee covering 5 years. These respective costs are tabulated below. 37

38 Table 8 Development and annual repair costs for child play facilities Play Area Year of develo pment Area in sqm Build cost Hackney Downs Clissold Park Clapton Common Stonebri dge Average Build cost per sqm Annua l Repair Repla ceme nt cost Annual repair cost per sqm Source: Hackney Parks Service 7.27 The average development cost per child play space (Table 6) in Hackney is 77per sqm (rounded). The average annual repair cost is 7.70per sqm (also Table 6). The annual repair cost is taken at 10% of the total development cost. Most play facilities have a design life of 10 years after which time it is generally more cost effective for full replacement. However given the difficulty in projecting repair costs over the longer term a shorter 5 year planning horizon is considered more appropriate. Therefore, the total repair charge covering a 5 year horizon equates to 7.70 multiplied by 5 years giving a total of per sqm. Table 9 Maintenance charge for child play facilities Play Area Ann ual insp ect cost Qrtly insp ect cost Wkly inspe ct cost Daily chec ks Annua l Mgmt cost Duratio n of mainte nance agreem ent Play Area Cost for 5 years Hackne y Downs ,630 Clissold Park ,970 Clapton Commo n

39 19,630 Stonebri dge ,630 Averag e ,715 Source: Hackney Parks Service 7.28 The third and final charge associated with the provision of child play space is the annual maintenance charge. These are fixed costs based on the broad size of the play space being inspected small, medium and large and therefore cannot be expressed as a per sqm charge. The annual and quarterly inspections are undertaken by external companies while the daily and weekly inspections are carried out by Parks Keepers. Medium size parks inspections typically take 30 mins with Parks Keepers charged out at 16 per hour (phr). Larger park inspections typically take 45 mins to complete. Adding these average costs together for a 5 year period is 21, Therefore in summary the three potential costs associated with child play provision are- Build cost per sqm = 77 per sqm 5 year repair charge = per sqm One off maintenance charge = 21, Where the applicant proposes to build the play space but not maintain it, they will only be liable for the repair cost and the maintenance cost. In these instances Hackney s Parks Service will need to be involved in designing the play space to ensure it achieves relevant standards. Where the applicant is to be charged a monetary contribution in lieu of on-site provision the three charges should all be applied (i.e. build cost per sqm, repair cost per sqm and the average maintenance charge) Using the above costs, the formulae to be used to calculate any monetary contribution towards child s play space provision is: Discounted rate for development which provides adequate open space on site but not child play: Child yield of development x shortfall of on-site child play provision (sqm) based on 10sqm per child x (build cost + repair cost) + maintenance charge (where applicable) x 50% discount factor For development which doesn t provide on-site open space or child play: Child yield of development x shortfall of on-site child play provision (sqm) based on 10sqm per child x (build cost + repair cost) + maintenance charge (where applicable) 39

40 Updating the formulae 7.32 The above formulae are intended as a basis for negotiation. The characteristics of the site and the nature of the development may necessitate different outcomes. If more up to date, relevant and specific information is provided (and deemed appropriate by the Council) the Council may choose to use this information as a basis for determining a monetary contribution The methodology to be used in calculating child yield is the same outlined in Chapter 11 Education and Library Facilities using the child yield figures outlined in Appendix 4. The child yields are specific to housing tenure, type (house or flat) and unit size. Heads of terms and spending Planning Contributions 7.34 Should a monetary contribution be considered acceptable it may be used for, but is not limited to: enhancing open space or child play facilities on the development site or providing new facilities nearby; or alternatively to help manage public open space maintained by the Hackney Parks Service located in the vicinity of the development site. 40

41 8. Transport & Highways Improvements Introduction 8.1 Outside of CIL, Planning Contributions will continue to be used to secure improvements to transport infrastructure within the vicinity of development sites in order to mitigate the impact of development. Any necessary alterations to the transport / highway network within or in the vicinity of new development will be expected to be incorporated within proposals, and permission will be refused if the developer is unwilling or unable to provide the necessary solutions. While the scope of any offsite works required to mitigate the impact of development will be secured under a s278 highways agreement or a Planning Contribution, the necessary works will be carried out either by the Council, or TfL (where they affect the Transport for London Road Network (TLRN)), with the developer responsible for meeting all costs associated with the design and implementation of schemes. Table 10 - Summary of the key applicable policies to transport and highways. London Plan Hackney Core Strategy Hackney Development Management Plan Local Policy 6.1 Strategic Approach Policy 6.3 Assessing Effects of Development on Transport Capacity Policy 8.2 Planning Obligations Policy CS6 Transport and Land Use PolicyCS24 Design PolicyCS33 - Promoting Sustainable Transport Policy DM44 - Movement Hierarchy Policy DM45 - Development and Transport Policy DM46 - Walking and Cycling Policy DM47 Parking, Car Free 15 and Car Capped Development 16 : 8.2 The CS and DMLP can be downloaded from the Council s website via the following links 15 Car-free development is defined in Hackney s DMLP as No parking provision will be allowed on site and the occupiers will have no ability to obtain car parking permits, except for parking needed to meet the needs of disabled people. 16 Car-capped development is defined in Hackney s DMLP as Limited amount of on-site car parking, but no access to on-street parking permits in order to avoid any impact on on-street parking. 41

42 Core Strategy Development Management Local Plan - Context 8.3 Recently released 2011 Census data has confirmed that Hackney has one of the lowest (and falling) car ownership levels per household in the country at 35%. Only 18% of the main trips by Hackney s residents are made by car compared to 34% by bus or rail. Hackney also has a high level of walking at 40%, while Hackney s cycling levels, at 6%, are the highest in London (TfL, 2012) giving further substance to the Council s decision to prioritise travel by means other than car use, with pedestrians needs at the top of the hierarchy. These trends have been confirmed by TfL s Travel in London Report 6 ( 6.pdf). 8.4 Hackney is generally very accessible by public transport. However the public transport network in Hackney primarily reflects the arterial demands for travel to and from Central London. The Public Transport Accessibility Level (PTAL) rating of a specific site can be found on TfL s Planning Database ( 8.5 Through its CS and DMLP policies, Hackney is seeking patterns and forms of development that minimise the need to travel to access goods and services, especially by car. The physical standard and environmental quality of all transport routes and links will also be properly maintained and improved wherever possible. 8.6 Given that potential transport and highways impacts are site and development specific in nature, the submission of transport assessments or transport statements (depending on the perceived impact of the development) and travel plans will be the primary mechanism in determining what mitigation measures are needed in response to development. When and what particular level of transport assessment is needed is clearly outlined in Hackney s emerging Sustainable Transport SPD along with the information each type of assessment should contain. 8.7 The draft Sustainable Transport SPD also outlines guidance specific to: Workplace Travel Plans; School Travel Plans; Residential Travel Plans; Travel Plans for short term events and concerts; Delivery and Servicing Management Plans; and Construction Logistic Plans. 42

43 Qualifying Development 8.8 The submission and subsequent approval of either, or a combination of, a transport assessment, transport statement and travel plan will set the basis for determining the transport and highway related measures that are required to mitigate the impacts of development. 8.9 The Council will require transport assessments for development proposals in accordance with the Department for Transport s Guidance on Transport Assessments (2007), Transport for London s Transport Assessment Best Practice Guidance Document (2010), and Hackney s draft Sustainable Transport SPD A tabular summary of when each assessment is applicable is included below and explained further in the draft Sustainable Transport SPD. 43

44 Table 11 - Requirements for Transport Assessments/Statements and Travel Plans Travel Transport Assessment Transport Statement Travel Plan Welcome Pack All development above DfT/TfL (TS) thresholds Development below these thresholds but generates significant trips Smaller development outside CPZ All D1 schools All D2 use class assembly and leisure 8.11 As stated in Policy DM48 of the DMLP and the Sustainable Transport SPD, applications for schemes located outside of CPZs will be required to submit a parking stress survey for assessment by the Council. For proposals within CPZs, any restrictions on on-street parking for potential occupiers will be incorporated within s106 agreements or other relevant agreements In addition, development proposals which are likely to attract a large number of vehicles for loading and servicing requirements will be required to submit a Delivery and Servicing Management Plan (DSP) as part of their transport assessment Construction and Logistics Plans (CLPs) have similar objectives to DSPs, but will be applied to the design and construction phases of development. Most CLPs will be required for submission as part of the transport assessment but may also be required as a condition of granting planning permission. Hackney also expects that all construction and servicing operators within the Borough will be committed to best practice initiatives such as TfL s Freight Operator Recognitions Scheme (FORS). The Council is particularly interested in FORS requirements for HGVs to undertake mandatory on-road cyclist awareness training given the number of haulage and delivery vehicles that are disproportionately involved in serious and fatal collisions in London. Again the Council s requirements around DSPs, CLPs and FORS are outlined in the draft Sustainable Transport SPD. Non-Monetary Contributions 44

45 8.14 A non-monetary contribution will be sought if required to mitigate the impact of development or where identified as necessary in a scheme s transport assessment or travel plan. Examples of non-monetary contributions include - Car free development, particularly when located in areas above PTAL 4 and CPZs, and occupiers of the development are restricted from obtaining on-street parking permits by legal agreement, as well as onsite parking other than the provision of suitable disabled parking; Car capped developments which restricted occupiers from accessing on-street permits usually through a legal agreement Hackney does not currently have such a limit in force regarding visitor parking permits in relation to car free and car capped developments. This will be reviewed in full as part of the Parking and Enforcement Plan ; Provision of car club bays on site in lieu of a monetary contribution in association with one of the Council s approved car club operators (see aspx?orgid=7952); Where car parking is permitted as part of new development, electrical vehicle charging points are provided in line with the London Plan and DMLP policies; and Provision of on-site cycle parking in accordance with the draft Sustainable Transport SPD In the case of both car-free and car-capped developments, the Council will require the developer to enter into a legal agreement to ensure that future occupiers of the development will not have access to on-street parking permits. In the case where a developer will not enter a legal agreement to accept this designation, planning permission will generally not be granted for the development. The legal agreement will require the owner of the development to inform incoming occupiers that they are not eligible to obtain a parking permit for on-street parking, or to purchase a space in a Council-controlled car park. This restriction on the units within the development will remain in perpetuity so that any subsequent purchasers of the property are informed that they are not eligible for parking permits A monitoring schedule and outline of the approach to monitoring is required within a travel plan; and should cover a monitoring period of at least 5 years or 5 years after all phases of a development is complete, whichever is longer. For larger multiphase development a broad framework travel plan is to be agreed at the outset to which each individual travel plan for each phases of the development should relate. Enforcement action should also be agreed should any unimplemented or failed measures occur during the monitoring period. Provisions to deal with any breach of the travel plan requirements should be incorporated in the travel plan itself. 45

46 Monetary Contributions 8.17 Monetary contributions may be required where new development proposals cannot demonstrate to the Council s satisfaction that expected impacts can be fully mitigated within Hackney s existing public transport network. With regard to public transport infrastructure, the Council has traditionally used Planning Contributions to secure a number of initiatives including (but not limited to): Additional bus routes or more frequent scheduling of existing routes; Implementing new bus stops in accordance with TfL s 'Accessible Bus Stop Design Guidance' in convenient and safe locations; Public realm improvements in and around public transport stations and bus stops and adjacent to a development site which is identified as needing to be upgraded and/or experience significant pedestrian movement; Reinstatement works to be completed in conjunction with the development to ensure that the required standards and appearance of the site is maintained these works include but are not limited to damage to or relocation of street furniture, removal of redundant crossovers, paving, lighting and street trees etc.; Improved signage, timetable and waiting facilities; Cycle parking at stations and on-street cycle parking; Footway widening; Other measures to promote safety and accessibility including ramps and CCTV cameras at stations; Car club spaces in lieu of on-site provision; and Electrical vehicle charging points in lieu of on-site provision The size of the monetary contribution required to mitigate the highways impacts of a development, is determined through negotiations between the developer and the Council and will in most cases be outlined in the transport assessment / transport statement and/or travel plan. The cost of any works to the public highway will be determined on a case by case basis by the Council s Highway Engineers. The basis of any costing will be undertaken pursuant to Hackney s Public Realm Design Guide, Hackney Transport Strategy (currently at draft stage) and Sustainable Transport SPD (currently at draft stage). Any monetary contribution is to be paid upon implementation of the scheme (there will be restrictions on the implementation of the development e.g. occupation until this contribution has been paid) and the developer will need to give notice (usually 6 months) to the Council for the Council to complete the works The developer will be required to pay the Council for the full cost of the works. Therefore the developer will have to pay an additional contribution should the cost of works exceed the original costing within 14 days of this being confirmed. Conversely the developer will be entitled to a refund should the actual cost of works be less than the original estimate. By co-operating with the Council and avoiding delay in implementing the development (at the same time as paying the contribution) and in giving notice to the Council to commence the works the developer can minimise the likelihood of a difference between the 46

47 estimate and actual costings. As a public body the Council has to be open about any costs incurred and will provide a certificate specifying the costs expended in carrying out the works. Included in any costing will usually be a requirement for the developer to pay for the maintenance of the works usually for a minimum of 12 months, after which the Council will be responsible for maintenance costs. Before the transfer of maintenance responsibilities, the Council (or TfL where in relation to the TLRN) will need to certify / approve the works to ensure they are of an adoptable standard. The developer will also be responsible for any compensation claims arising from the works and for any charges made by statutory undertakers to the extent their apparatus is affected by the works It is essential that travel plan, infrastructure and traffic management measures are provided in a timescale commensurate with the proposed phasing of the development and the Council will seek to approve trigger points through the appropriate legal agreements Proposals which have an impact on the TLRN or the Strategic Road Network may attract a financial contribution under the Mayor s S106 Planning Obligations SPD and the London Plan (as amended) Developments which meet the threshold for a travel plan will need to meet the cost of publicising, implementing and monitoring the travel plan outcomes including any financial penalties until such time as the travel plan objectives are met. These costs may include measures to promote sustainable transport for example TfL travel cards and car club membership subsidies etc. The travel plan should include a welcome pack to raise awareness of the sustainable travel initiatives being implemented through the travel plan. This should be submitted with the final travel plan as part of discharging conditions. Hackney is currently preparing template welcome packs which can be tailored to specific sites. The template can be provided but the costs for amendments and printing will be borne by the developer Where a travel plan is required (see Table 11 above) the Council will also secure a monetary contribution as part of any relevant legal agreement to cover the costs of monitoring whether the travel plan is successful in meeting its agreed modal shift targets and providing advice on how to implement and deliver a successful travel plan. This fee (see paragraph 8.27) will generally be payable at the time of signing the legal agreement or approval of the travel plan or commencement of the development The travel plan will outline how the plan will be managed and provide a schedule of how the plan will be implemented and associated costs to deliver measures to discourage car travel and encourage sustainable transport. Review / Monitoring 47

48 8.25 The owner shall ensure that the travel plan contains arrangements for the review and monitoring of the travel plan on an annual basis for a minimum of 5 years or 5 years after all phases of a development is complete (whichever is longer), which will secure an ongoing process of continuous improvement. It is acknowledged that it will be appropriate to amend the travel plan by agreement with the Council in the light of developing circumstances. Each version of the travel plan shall set out a mechanism for reporting back to the Council on an annual basis on how effectively the travel plan is being in maximising the use of sustainable transport Monitoring requirement of travel plans include - A. The travel plan should include itrace or TRAVL-compliant surveying, undertaken by an Independent Field Company (IFC) in line with TfL s guidance. B. The travel plan shall be monitored using the current itrace or TRAVL standards, in place at the time when each monitoring survey is due; or subsequent standards if the monitoring becomes overdue. C. The costs of commissioning the ongoing itrace or TRAVL compatible surveys will be borne by the owner. D. The results of the monitoring shall be submitted to the Council and TRAVL. E. The TRAVL surveys shall be carried out at the following points from occupation: within 6 months of occupation (referred to as Year One ) then again at Year 3 and Year 5 (i.e. 2 and 4 years from the date of the Year One survey). F. Additional monitoring shall also be carried out in accordance with the approved travel plan. G. Annual monitoring reports shall be submitted to the Council for its approval, detailing survey results, progress towards targets, and implementation of measures (including remedial measures as appropriate). H. In the event that the travel plan fails to meet its approved targets the owner shall provide to the Council, for its approval, an updated travel plan within 60 days of the annual review in which remedial measures are outlined to achieve targets together with a revised timetable. I. The monitoring requirement of the travel plan shall cease following approval of the Year 5 monitoring report by the Council The current monitoring fee for each travel plan is This is an indicative figure and may vary depending on the nature of the proposal. Heads of terms and spending Planning Contributions 8.28 The following mitigation mechanisms may be required, in the form of site specific works on or within the vicinity of the site, to mitigate the impact of development - Requirement for a transport assessment or travel statement; 48

49 Requirement for a travel plan measures to support sustainable travel, including preparation of any legal agreement; contribution towards implementation of measures and monitoring; Securing Car Free/Capped arrangements, restricting parking spaces and parking permits; Contributing to Car Clubs designated parking spaces and measures to promote membership; Provision of disabled parking on and or within the vicinity of the site; Electronic Charging Points, on and or within the vicinity of the site; Provision and improvement of local pedestrian and cycling routes required to mitigate the adverse effects of the development and make the development acceptable; Provision of local linkages to strategic cycling routes in the vicinity of development; Improvements of pedestrian facilities such as pedestrian crossings in close proximity to the development site; required to mitigate the adverse effects of the development and make the development acceptable; Removal or altering existing on-street parking to provide cross over splays and maintain adequate site lines; Improving/increasing public transport access and capacity; Works to upgrade public transport infrastructure in the vicinity of major development and or visitor attraction development sites; including bus stops/shelters and count down facilities; required to mitigate the adverse effects of the development and make the development acceptable; Traffic management and traffic calming initiatives in the vicinity of the development site; Public realm improvements in the vicinity of the development site; Planting and/or protection of street trees in the vicinity of the development; Footway widening, general public realm upgrades and pedestrian improvements at local junctions, required to mitigate the adverse effects of the development and/ make the development acceptable; and Measures to promote safety and accessibility including ramps, lifts and CCTV cameras at stations; required to mitigate the adverse effects of the development and make the development acceptable. 49

50 9. Affordable Housing Introduction 9.1 The provision of new homes to match demand in London is a significant policy issue facing all levels of government. The funding and policy landscape is constantly changing, particularly in recent times. This chapter relates specifically to Affordable Housing and how its provision in Hackney will be secured through legal agreements. 9.2 The proposed Affordable Housing SPD will expand upon the boroughwide Affordable Housing policies included in both the CS and the DMLP. As part of this process, further guidance will be provided to ensure that applicants are fully aware of Hackney s requirements at the preapplication stage, so that Affordable Housing is well designed and maximised. 9.3 This chapter should be read in conjunction with the Affordable Housing SPD once it has been prepared. Table 12- Summary of the key policies applicable to affordable housing. London Plan Hackney Core Strategy Hackney Development Management Plan Local Policy 3.3 Increasing Housing Supply Policy 3.4 Optimising Housing Potential Policy 3.5 Quality and Design of Housing Developments Policy 3.8 Housing Choice Policy 3.10 Definition of Affordable Housing Policy 3.11 Affordable Housing Targets Policy 3.12 Policy CS20 Affordable Housing Policy DM19 General Approach to New Housing Development Policy DM20 Loss of Housing Policy DM21 Affordable Housing Delivery Policy DM22 Homes of Different Sizes Policy DM23 Residential Conversions 50

51 Negotiating Affordable Housing on Individual Private Residential and Mixed Use Schemes Policy 3.13 Affordable Housing Thresholds Policy Existing Housing 9.4 The CS and DMLP can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context 9.5 Being a central London borough, the provision of Affordable Housing remains particularly challenging in Hackney given the buoyancy of the local housing market, which is now above its pre-recession peak, and the reduction in capital funding investment in Affordable Housing from the Government. In response to these pressures Affordable Housing-related policies exist at all levels of government. Recent Government changes 9.6 The Localism Act 2011 introduced a range of changes to the social housing support system which impacted on planning policy and Affordable Housing delivery in particular. The most significant change was the introduction of a new category of Affordable Rent housing where, from April 2011, social housing providers have been able to charge rent levels of up to 80% of local market rents, inclusive of service charges. 9.7 The Council is concerned that rents set at 80% of local market rents will be unaffordable for people on low incomes, in particular for families in receipt of housing benefit. In Hackney, the median market rent for a twobedroom flat is 1,625 17, and the Council is concerned that rents set at 80% of these levels will remain unaffordable. By contrast, most existing housing association or Council homes are let at target rents, which are on average less than half of market rent levels. If the rent levels for social 17 GLA Rents Map data for the 12 months to October

52 housing are set at or near to 80% of local market rent levels, this could mean they are unaffordable for local people, particularly for larger households. 9.8 In the wider context of a 60 per cent reduction in capital funding from the Government over the and funding periods; the intention is that future resources for building new Affordable Homes for rent will primarily be raised through greater reliance on the rental streams generated by developments, rather than a direct subsidy of the development costs. 9.9 Alongside Affordable Rent, the Government introduced a weekly cap on the amount of benefit they would pay towards rents for each size of private rented property, known as the Local Housing Allowance (LHA) From July 2013, the Government has also introduced a total benefit cap for all households The Government s rationale for introducing the caps was to provide a fairer and more sustainable Housing Benefit scheme by taking steps to ensure that people on benefit are not living in accommodation that would be out of the reach of most people in work One result of these changes is that the private rented sector is becoming increasingly unaffordable for local residents, resulting in a ripple effect as those in receipt of benefits are forced to find housing in areas where rents are cheaper. The Government s 60 per cent cut in national housing budgets, the introduction of the new Affordable Rented tenure (with rents potentially as high as 80% of local market rents) and the limits on housing benefit help to meet private rents, are set to further reduce the supply of Affordable Housing in the Borough as we currently know it. Demand for Affordable Housing in the Borough is already high with approximately 10,000 households on Hackney s housing register as of May It is noted, however, that the GLA s expectation is that half of the Affordable Rent programme for the period will be capped at 50% of local market rents and the other half discounted at not more than 80% of local market rents. In a joint framework agreement with the GLA, the Council has agreed that capped rent levels in Hackney will be set at 50% of lower quartile market rents (not median), which will make these new homes more affordable for local residents. 18 Hackney housing market 9.14 GLA projections, using the 2011 Census as a basis, predict Hackney s population will increase by another 70,000 people by This growth will place increasing pressure on the provision of new housing in general, but particularly for Affordable Housing, where there is significant, demonstrated need. 18 The joint framework agreement is published on the Hackney Council website: 52

53 9.15 Based on the 2011 Census, approximately 44% of Hackney s housing stock is social rented housing (which is one of the highest proportions in the country), 26% is owner occupied and, 29% of all homes are now privately rented (more than doubling in size over 10 years) Although average incomes in Hackney increased by around 34% over the period from 1997 to 2011, over the same timeframe Land Registry data shows that house prices have increased by 500%. The current ratio of average income to house prices (including full market rents) therefore makes housing unaffordable to many residents. Housing targets and current delivery 9.17 The current housing delivery target for Hackney is 1,599 new homes per annum. This is set out in the Further Alterations to the London Plan (FALP). This and any future target is intended to be a floor for delivery and not a ceiling. Hackney s delivery against this and any future targets, including specific to Affordable Housing, is outlined in its Authority Monitoring Report (AMR) The Council is also currently building its own new homes for social renting across the Borough as part of its Estate Regeneration Programme. This currently comprises a 10-year programme to provide more than 2,700 homes in total, half of which for social renting and shared ownership, with the rest for private sale to help fund the development works. Qualifying Development 9.19 As specified in CS Policy 20 and DMLP Policy 21 the following developments qualify for the provision of 50% Affordable Housing All developments comprising of 10 or more residential units, including part-conversion/part new-build schemes; Residential developments with a site area of more than 1000sqm or 0.1Ha; Phased or connected developments etc. where a housing development is part of a larger development meeting or exceeding the above thresholds; or Development where additional homes are proposed through amended planning applications within four years of the commencement of the original planning permission and the total number of homes proposed increases to 10 or more, or the site threshold above Where the 50% target of Affordable Housing is not met, a viability assessment will be required. Independent viability assessments carried out by the Council, or a consultant employed on their behalf, are to be 53

54 paid for by the applicant. Viability reports are to be based on existing use value plus a reasonable premium or an alternative use value which has regard to Hackney's Local Plan policies and all other material planning considerations and disregards that which is contrary to the Local Plan. The Affordable Housing Development Control Toolkit (Three Dragons), or an agreed alternative such as Argus, should be used and further details are to be found on the Council s website in relation to the validation of planning applications. Non-Monetary Contributions 9.21 Non-monetary Affordable Housing contributions can be secured in two ways; firstly by providing Affordable Housing on the site the subject of the planning application (the application site ) which is the preference of adopted policy Secondly and only in exceptional circumstances, (Mayor of London s Housing SPG Nov 2012, and Hackney s Core Strategy) off-site provision may be permissible provided more Affordable Housing is to be provided offsite than that would be possible on the application site. This option is different to a monetary contribution as the Affordable Housing units are physically provided but on an alternative site Any alternative sites selected should preferably be in the vicinity of the main application site to ensure the benefits of the Affordable Housing provision are realised locally. As confirmed by paragraph of the DMLP vicinity as a guide is considered to be within 10 minutes walking distance or 800m of the main application site. The precise location(s) will be considered on a case by cases basis In any event, any request for off-site provision will be subject to final agreement by the Council. The methodology for delivery of the off-site Affordable Housing will be set out in the legal agreement and another relevant agreement may be needed to secure each off-site provision, along with other Heads of Terms (see below). Monetary Contributions 9.25 Again it must be stressed that the Council has a strong policy presumption (in line with the London Mayor's London Plan and Housing SPG) in favour of providing as much Affordable Housing on-site as possible in all cases. Where it has been agreed and accepted that Affordable Housing cannot be provided on-site or off-site, the Council will seek a monetary contribution to be used towards meeting local Affordable Housing needs elsewhere in the Borough. This is referred to as an in-lieu or commuted sum payment and will only be considered in 54

55 accordance with London Plan and Core Strategy policy and the forthcoming Affordable Housing SPD Monetary contributions may be sought where additional homes are created through amended or associated (i.e. on the same or adjacent land under common ownership) planning applications and the total number of homes increases to 10 or more (see Qualifying Development above). The Council may also seek to secure payments in lieu of on-site Affordable Housing when Affordable Housing would normally be required as a result of a conversion or change of use of an existing building For a monetary contribution to be considered acceptable the Council must first agree exceptional circumstances exist in accordance with the London Plan and the Mayor s Housing SPG which could allow more Affordable Housing to be delivered. The London Plan (para 3.74) states that exceptional circumstances might include the following: Secure a higher level of provision; Better address priority needs (especially for affordable family housing); Secure a more balanced community; and Better sustain strategically important clusters of economic activity especially in the CAZ 9.28 Regardless of whether the monetary contribution is in lieu of the complete on-site Affordable Housing requirement or there is a combination of on-site provision and a monetary contribution, the total Affordable Housing likely to be provided from a scheme should have regard to Table 1 Preferred Dwelling Mix contained within the DMLP. Such requirement will generally be identified at pre-application or application stage The approximate number of Affordable Housing units that can be provided by the monetary contribution should be identified. The applicant should have detailed discussions with a registered provider (approved by Hackney) and the Council s Housing Delivery team at pre-application stage as a means of providing increased certainty of delivery and ensuring affordability of the units to the Borough's residents. Where an agreement for off-site provision with a registered provider cannot be achieved, the monetary contribution will be pooled and ring fenced for the provision of Affordable Housing. Heads of terms and spending Planning Contributions 9.30 The likely Heads of Terms will be discussed as part of the pre-application process and may need to be agreed at Committee. The Heads of Terms will include approval of and associated delivery mechanisms of any offsite Affordable Housing provision to ensure appropriate location and unit and tenure mix. Early discussion is therefore important to enable the legal agreement to be completed within the Government s timeframe of 13 weeks in the case of major applications. 55

56 9.31 The range of possible Heads of Terms will include the following (with others added that are unique to a particular application): The location - of Affordable Housing units within the site; Number, tenure and size - of the Affordable Housing units; Any applicable standards - which the Affordable Housing units must meet; Restriction on occupation of open market dwellings until all affordable dwellings have been delivered; Viability review at a later date to assess whether a greater level of affordable housing provision can be delivered. Conditions regarding nomination rights - to make sure that the Council have the right to nominate people from its housing register; Provisions relating to Affordable Rent / Social Rent and Intermediate Housing; Off-site contributions, monetary and non-monetary; and Ring-fencing of monetary contributions solely for the provision of Affordable Housing in the Borough. 56

57 10. Sustainable Design and Construction Introduction 10.1 The Core Strategy (CS) promotes Hackney s Sustainable Community Strategy (SCS) vision of a sustainable community, where all citizens take pride in and take care of Hackney and its environment, for future generations. The Council is currently drafting a guidance document which will set out the measures developers can take to achieve the necessary reductions in carbon emissions and how they are expected to meet relevant CS and DMLP policies. Once published the Sustainable Design and Construction SPD and this chapter should be read together. Table 13- Summary of the key policies applicable to sustainable design and construction. London Plan Hackney Core Strategy Hackney Development Management Plan Local Chapter 5 - Sustainable Design and Construction Policy CS29 - Resource Efficiency and Reducing Carbon Dioxide Emissions Policy DM37 - Performance Targets for Major Residential Development Policy DM38 Sustainability Standards for Minor Residential Development Policy DM39 Sustainability Standards for Other Development Policy DM40 Offsetting Policy DM41 Heating and Cooling Policy DM42 Contaminated Land Policy DM43 - Pollution and Water and Air Quality 57

58 10.2 The CS and DMLP can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context 10.3 The Government and the GLA through the London Plan have set targets to Cut carbon emissions in new commercial development 10.4 The carbon emission targets will be tightened in phases over the next 6 years as follows: 35 reduction in emissions from October % zero carbon emissions for non-residential development beginning Where carbon emission reductions cannot be delivered on site the shortfall must be provided off site or through a monetary contribution to the borough to be ring fenced to secure delivery of carbon emission savings elsewhere. Green Infrastructure 10.6 Developers should identify measures to protect ecological habitats in or adjoining a proposed development site. Where a developer is unable to preserve a habitat on the development site and the development is considered acceptable in all other respects the Council will consider a monetary contribution equivalent to the cost of re-providing the habitat on an alternative site in the locality Any development which has a direct impact on, or is in close proximity to, a watercourse must demonstrate that the proposal has had regard to the EU Water Frame Work Directive and the restoration/re-naturalisation of rivers. The Council may require a monetary contribution towards improvement works to a watercourse to achieve good ecological potential. Flood Risk 10.8 New development could potentially increase levels of surface water runoff, which raises the risk of flooding. Locating development on land at lower risk of flooding is important to future proof development against the negative impacts of climate change. Where development is proposed in Critical Drainage Areas (CDA) or in an area at risk of flooding from fluvial, as well as surface water flood risk, the Council may seek a 58

59 monetary contribution from the developer towards water and/or sewerage infrastructure and flood risk mitigation measures which are appropriate and specific to the development, in order to make it acceptable in planning terms. Air Quality 10.9 Hackney has some of the poorest air quality levels in London and consequently the whole of the Borough has been declared an Air Quality Management Area for nitrogen dioxide and particulate matter. Hackney has produced an Air Quality Action Plan (AQAP) that identifies actions and mitigating measures necessary to improve air quality In order to address the poor air quality in Hackney, new development proposals will be required to make a monetary contribution towards the measures identified in the AQAP. The monetary contribution will be used to monitor the impact of the construction and operational phase of development to ensure that it does not contribute to the further deterioration of the air quality in the Borough. Monetary contributions will be used to fund specialist monitoring equipment and a dedicated air pollution monitoring officer. Qualifying Development All development is required to reflect sustainable design and construction principles in keeping with the London Plan, particularly Policy 5.2, and Chapter 7 of the Hackney DMLP All developers will be required to submit Energy and Sustainability statements commensurate to the size/nature of the proposed development. Non Monetary Contributions Planning conditions would generally be used to address sustainable design and construction issues relating to development however there will be instances where they will have to be secured by legal agreement. Monetary Contributions The monetary contributions which developers may be required to make include: Air quality monitoring Flood mitigation measures (as detailed in paragraph 10.8 above) Green Infrastructure Works to watercourse to achieve good ecological potential Any necessary works to towpaths, and accesses to and from towpaths Zero Carbon and Carbon Offsetting Fund Carbon Offset Funding Mechanism 59

60 10.15 London Plan Policy 5.2 sets out policy where the percentage of improvements beyond Part L of the building regulations are not met onsite, any shortfall should be provided off site or through a cash-in-lieu contribution to the boroughs Carbon Offset fund The policy framework establishing Carbon Offset for Hackney is set out within Policy DM 40 of Hackney s DMLP. Full details of the mechanism for collection of monetary contributions and the administration of the fund are set out below. When will a Planning Contribution for Carbon Off-setting be sought? Based on the information provided within the energy statement submitted with a planning application, the Council will seek to negotiate s106 agreements with developers where the extent of carbon dioxide emission reductions to be achieved on site is insufficient to meet the target below. These targets will be tightened to meet Zero Carbon in line with National Standards At least a 40% reduction in regulated carbon dioxide emissions compared to the Target Emission Rate (TER) for all major residential and major non- residential buildings in accordance with Policies DM 37 and 39 of the DMLP At least a 25% reduction in regulated carbon dioxide emissions compared to the TER for all major residential and non-residential refurbishments The standards as set out will be tightened in accordance with the requirements outlined by London Plan policy to meet zero carbon and Allowable Solutions Allowable Solutions will be established in 2016 and will provide a national mechanism for developers to achieve the Zero Carbon requirement. This will supersede the Borough s Carbon Offset policy Under the Carbon Offset framework, the Council will negotiate a monetary contribution through the legal agreement process to be paid into the Council s Carbon Offset Fund. This will be negotiated in all situations where the applicant is unable to meet the required reduction in carbon emissions on site The cost per tonne of carbon is set at the nationally recognised price for carbon dioxide, as set by the Zero Carbon Hub, of 60 per tonne. Following London Plan guidance the overall contribution is calculated over a 30 year period. Therefore, the total cost per tonne of carbon is 60 x 30 years = 1,800 per tonne of carbon to be offset. This price will be reviewed at the beginning of each financial year and set in accordance with the Zero Carbon Hub The funds generated through this collection process will be used to deliver carbon dioxide reduction projects, where possible, within the locality of the proposed development. Where this is not possible they will be invested in an offset project within the borough The funds generated will be ring fenced and managed directly by the Council and invested in the following types of projects: community owned 60

61 renewable energy projects, behavioural change projects (where the reduction in carbon can be quantified), linkages at local level to facilitate the delivery of low carbon district heat network (DHN) infrastructure, provision of site specific linkages to combined heat and power (CHP) units where connection to an existing DHN will take place, and retrofit of insulation and other energy efficiency measures to the existing social housing stock It is important that both the Council and developers are able to account for the reduction in carbon dioxide emissions through offsetting projects. Therefore, the savings will be measured and apportioned in proportion to the capital funding provided by each party for each project. Heads of terms and spending Planning Contributions Planning Contributions secured through legal agreement may include: Flood Risk Assessment (FRA) & other flood mitigation measures specific to the development and for the purpose of mitigating the impact of development Maintenance Plan On site construction Independent environmental study Securing green infrastructure Renewable energy management plan Air Quality Management Areas Pollution mitigation measures Environmental Impact Assessment (EIA) Waste and recycling management needed to mitigate the impact of development Archeologically assessment Water Pollution Management 61

62 11. Education and Library Facilities Introduction 11.1 Education facilities and key social infrastructure like libraries, are an essential resource for the development of well-balanced and sustainable communities. These facilities have the potential to meet the educational needs of school age children and provide a community hub capable of providing lifelong family learning and support. Table 14 - Summary of the key policies applicable to education and library facilities. London Plan Hackney Core Strategy Hackney Development Management Plan Local Policy 3.18 Education Facilities Policy CS7 - Working with Infrastructure Partners Policy CS8 - Focusing Social Investment PolicyCS9 - Investing in Education Policy DM5 Protection and Delivery of Social and Community Facilities and Places of Worship 11.2 The CS and DMLP can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context 11.3 The Council is facing pressure for school places resulting from a growing youth population. In addition, councils are now required to make education provision for children aged 2+ from low income families, as well as raise the participation age of young people in education from 16 to 19yrs The Hackney Infrastructure Assessment and Delivery Plan (IDP) should be referred to for an in depth analysis of the supply, demand and subsequent funding requirements for education and libraries facilities. For ease of reference a snapshot for primary and secondary school places as well as library facilities is outlined in the sections below. 62

63 Analysis of other education-related facilities, such as special needs facilities, is outlined in the IDP. Primary school places 11.5 Current GLA projections indicate that additional places will be needed between 2014 and 2018 equating to 9FE or 270 places. A small surplus has been built into this planning to ensure that there are sufficient places for the high number of pupils that arrive in-year. This is in line with Department for Education (DFE) assumptions. A number of primary school expansions are being considered to provide the additional places and feasibility studies have/are being carried out. At present, it is anticipated that the costs to meet the primary and secondary school place needs up until 2018 will be in the region of 70million (2013 prices). This is in addition to the general repair, maintenance and improvements needs of the school estate. Secondary school places 11.6 In addition to the 2195 places available from September 2013, a further 120 places will be provided at Mossbourne (Victoria Park) in A further 10FE will be required by 2019 in order for secondary schools to keep pace with the current demand which is seeing 83% 19 of children resident in Hackney being educated in Hackney There is insufficient capacity for the expansion of existing secondary schools to meet the demand for 10FE by A new secondary school would grow from year 7 in the same fashion as the existing academies; a model which has delivered significant improvement in educational outcomes in the Borough. In order to keep pace with current demand there is therefore a need for a new secondary school along with the expansion of selected existing schools when the time is appropriate. Library facilities 11.8 Currently there is no plan to open additional libraries, or to expand provision beyond the CLR James Dalston Library but there are proposed works to improve the quality of existing libraries in the Borough Due to significant investment in Hackney s libraries (for example, Dalston C.L.R. James Library and Archives and Clapton Library) to address population growth, standards for library provision are currently sufficient. However, if significant population growth becomes a reality in the Hackney Wick area then it is likely that provision for that part of the Borough will need to be increased Given this SPD supports the CS and DMLP, which are longer term documents covering a planning horizon of 15 years, it s possible that Planning Contributions may need to be secured in the future to ensure library facilities keep pace with future predicted population growth. 19 Source The Learning Trust - 63

64 Qualifying Development The CIL Charging Schedule will normally be used to fund education and library related infrastructure resulting from development as set out in the Council s Regulation 123 List However in a limited number of instances Planning Contributions may also be required Where sought through a legal agreement instead of CIL the following Qualifying Development may be required to make a Planning Contribution toward education and/or library facilities All developments comprising of 10 or more residential units, including part-conversion/part new-build schemes; and / or Residential developments with a site area of more than 1000 sqm or 0.1Ha; and/or Development which impacts an existing education or library facility. Non-Monetary Contributions Where the opportunity arises, an education and/or library facility may be able to be incorporated into a new major development. For instance, where a developer, through certain economies of scale, is able and willing to build and fit out an identified education / library facility to an appropriate standard cheaper than the equivalent monetary contribution; or after negotiations with the Council, the developer is willing to build out an education / library facility incorporating match funding from other sources In doing so, the developer would save on any economies of scale associated with undertaking works as part of the wider development. The exact nature, scale and design of any works undertaken by the developer will be agreed between the Council and the applicant/developer. Monetary Contributions Education Facilities The Council will expect developers to make the following monetary contributions (payable upon implementation) for each school place in line with the following formula. (Primary school child yield of development x Average cost per primary school pupil) + (Secondary school child yield of development x Average cost per secondary school pupil) + (16-19 yrs olds child yield of development x Average cost per yrs old pupil) = Total monetary contribution 64

65 11.17 This is a simplified overview formula. To accurately calculate the education contributions of a development the following four step process should be worked through. Step One Establish unit types for assessment Child yields vary considerably according to unit size, type and tenure. Because of this and in order to calculate accurate education contributions, as detailed as possible development schedules will be required for the development in question The initial step in calculating the education contributions is to complete a development unit schedule as set out in Table 15 below. Table 15 Development unit schedule Market units Intermediate units Social / Affordable Rented units 1 bed 2 bed 3 bed 4 bed+ Step Two Apply LB Hackney child yields to units Each unit type included in the development unit schedule (under step 1) has a corresponding child yield ratio which can be used to generate child yields. The child yields stated in Appendix 4 should be multiplied against the number of units (of that particular unit type) included in the development unit schedule. As part of this SPD s implementation (once adopted), the Council will develop a spreadsheet tool to assist in making this calculation The child yields presented in Appendix 4 are specific to housing tenure and unit size. The primary age child yield represents the age cohort of 4 to 10 (including a 26% proportion of the 0 to 3 year age group). The secondary aged child yield represents the age cohort of 11 to 15 years. The post 16 further education aged child yield represents the age cohort of 16 to 19 years As stated above, the participation age of young people in education has risen from 16 to 19 yrs old. For this reason, the child yield figures for 16 to 19 year olds have been included in this revised SPD. 65

66 Step Three Apply affordable housing discount There is a high proportion of local take up of new Affordable Housing by existing Hackney residents. In recognition of this local take up, where a development provides an Affordable Housing contribution, the affordable component of the development will be eligible for a discounted education facilities contribution. Using the percentages provided below the total number of children (both primary and secondary) generated from intermediate and social rented affordable units should be adjusted before moving to step 4. The number of children established in step 2 for affordable units should be multiplied by the percentages presented below The contribution sought for affordable units is as follows: Intermediate Affordable Housing - contribution from developers of 38% of the child yield generated by intermediate affordable units (based upon an assessment of the local take up of Affordable Housing). Social Rented Affordable Housing - contribution from developers of 20% of the child yield generated by social rented affordable units (based upon an assessment of the local take up of Affordable Housing). The education facilities contribution for market units will not be subject to a discounted rate. For further information on the above discount levels refer to the LB Hackney Child Yield Review Final Report Step Four Apply average costs per pupil Table 16 - Cost per Pupil Place Cost per primary place 18,095 Cost per secondary place 26,040 Cost per post 16 place 26,040 Source Hackney Council Education Property Department The cost per pupil place is based on an average figure of total outturn costs for projects completed by Hackney Council's Education Property Department in the last 5 years plus estimate costs for new projects that have reached feasibility stage. The list of schemes covers a range of projects including new build, refurbishments and extensions so to provide an average of costs for a variety of schemes. This cost per pupil provides a more accurate figure for project costs in Hackney than national averages The unit cost per pupil is then calculated by the total average costs of the projects and apportioning the costs by the number of pupil places provided. The cost includes all aspects of the building project, including all fees, surveys and construction costs but excludes land transfer and internal council costs. The costs have also been updated to reflect 66

67 additional costs associated with post 16 pupils to reflect the changes to the statutory leaving age. These figures do not include costs for special schools in Hackney. The above figures will be reviewed annually to reflect changes in school building construction costs The formula is intended as a basis for negotiation. The exact Planning Contributions triggered by a development will be negotiated on a site bysite basis. If more up to date, relevant and specific information is provided (and deemed appropriate by the Council) the Council may choose to use this information as a basis for determining a monetary contribution The methodology used to calculate the child yield generated by residential development in Hackney is based on the GLA s Population Yield Calculator which provides estimates of population yield from new housing development, using small-area Census 2011 data together with information from the London Development Database. Variations to the formula: The above formula for calculating monetary contributions may be negotiated in the following circumstances: Where the development replaces existing housing, the contribution will be calculated against the net increase in child yield (this will require an additional calculation within step 1 of the above process to refine the Development Unit Schedule to show a net housing mix for assessment). In view of the impact of major residential development on educational provision, where a proposal involves more than 150 residential units, the monetary contribution sought will be subject to further negotiation and in consultation with The Learning Trust. Monetary Contributions Library Facilities As outlined in paragraphs 11.8 to and the IDP, recent investment in libraries has helped maintain access to these facilities at above relevant standards. However, population growth will likely require further investment in future which may need to be funded through s Should this situation arise any monetary contribution towards library facilities will be negotiated on a case by case basis using the standard charges recommended by the Arts Council England and Museums, Libraries and Archives of 105 per person in new housing towards libraries and 22 for archives provision The 105 per person for libraries is based on a benchmark provision figure of 30 sqm per 1,000 population at a construction and initial fit out cost of 3,514 per sqm. The 22 per person for archives provision is based on a benchmark of 6 sqm per 1,000 population of archive space at an initial construction and fit out cost of 3,600 per sqm These standard charges are to be multiplied to the appropriate household contribution for each residential scheme as follows: 67

68 (Residential household size by the relevant ward) (See Appendix 1) X (No of residential units in scheme) X (Combined standard charge per person for library and archives provision) (i.e. 127 per person) = monetary contribution Heads of terms and spending Planning Contributions Planning Contributions received for education and/or library facilities will be used for but not limited to: The provision of additional school places; Adapting and/or extending education facilities; Building new education facilities; Day care nurseries including additional early years childcare places for the benefit of local workers - this may be in the form of a start-up grant for a new childcare provider or a monetary contribution to expand existing childcare provision; Before and after school/holiday care; Extending school provision (i.e. family learning and support); Construction and fitting out of new library buildings; Refurbishment or extension of existing library buildings; Environmental/public realm improvements in and around library facilities; Car parking improvements associated with library facilities; Improved or new fittings, IT equipment and/or book stock; Supply of land for library facilities (will be identified as part of preapplication discussions); and Mobile library facilities. 68

69 12. Healthcare Facilities Introduction 12.1 This chapter focuses on the impact of development on the health and wellbeing of all Hackney residents through measures to improve the provision of health facilities in the Borough and address health inequality. New residential development will generally lead to an increase in population which can in turn place increasing pressure on local health facilities Health facilities will primarily be funded through CIL but the Council may seek Planning Contributions in place of CIL in a limited number of instances. Table 17 - Summary of the key policies applicable to healthcare facilities. London Plan Hackney Core Strategy Hackney Development Management Plan Local Policy 3.2. Improving Health and addressing health inequalities, Plan policy 3.17 Health and Social Care Facilities Policy 11 Health Investment and Infrastructure Policy 12 Health and Environment Policy DM3 - Promoting Health and Well-Being 12.3 The CS and DMLP can be downloaded from the Council s website via the following links Core Strategy Development Management Local Plan - Context 12.4 The Hackney Health Profile 2010 states that the health of people in the Borough overall is generally poor. In Hackney, male life expectancy is lower than the national average and female life expectancy varies by 4.6 years when comparing the most and least deprived wards. In addition, there is a number of pressing health needs in the area, including high levels of childhood obesity, prevalence of severe mental health conditions, late presentation for cancer and deaths from heart disease and stroke. 69

70 12.5 The Council will work with health service providers e.g. the Hackney Health and Wellbeing Board to identify the implications of residential development proposals on the provision of health services in the Borough. The Board produces the Joint Strategic Needs Assessment (JSNA) for Hackney and the City which can be viewed on the Hackney website at: Hackney-Health-and-Wellbeing-Profile pdf. Qualifying Development 12.6 The CIL charging schedule will normally be used to fund health related infrastructure resulting from development as set out in the Council s Regulation 123 List In the event that CIL is not charged Planning Contributions will be applicable where the following thresholds apply. Major residential schemes consisting of 150 units or more; and/or Development which impacts an existing health facility. Non-Monetary Contributions 12.8 The submission of a Health Impact Assessment is required to identify the impacts of development on the wider determinants of health, and to identify and implement measures to mitigate adverse impacts and enhance beneficial impacts Where the opportunity arises a health facility may be able to be incorporated within a new major development. For instance, where a developer through certain economies of scale is able and willing to build out an identified health facility to an appropriate standard cheaper than any required monetary contribution. Monetary Contributions The Healthy Urban Development Unit (HUDU) model will be used to calculate any healthcare contribution required to mitigate the impact of development based on the likely population of the proposed development. The contribution takes into account the number/amount of hospital beds or floor space required for that population in terms of acute elective, acute non-elective, intermediate care, mental health and primary care; the capital cost of providing the required space and the revenue costs of running the necessary services before mainstream NHS funding takes account of the new population. Details of the Healthy Urban Development Unit (HUDU) model can be found at 70

71 Heads of terms and spending Planning Contributions Planning Contributions will generally be used for, but are not limited to, the following services: Primary Care: GP Services; Intermediate Care: day places and beds; Acute Facilities: elective, non-elective and day care beds; Mental Health Services; or Revenue Contributions: covering running costs of the above and the full range of community health services. 71

72 13. Appendix 1 - Household size by ward Ward Population Size Number of Households Average Household Size Woodberry Down Brownswood Stamford Hill West 3.11 Clissold Cazenove Hackney Downs Springfield Stoke Newington Homerton Lea Bridge King's Park Hackney Wick Hackney Central Victoria London Fields Shacklewell Dalston De Beauvoir Haggerston Hoxton East & Shoreditch 2.16 Hoxton West In 2014 new ward boundaries were introduced in Hackney. This means that it is not possible to directly source data from the 2011 Census for the wards affected by the changes. The Census data contained in this profile is built up from smaller geographies, and uses a best fit methodology. It should also be noted that there may be some anomalies in the new data due to rounding. 72

73 14. Appendix 2 - Employment density by Use Class The below table is to be used for calculating the employee yield of nonoffice development. For office employee yield 1 person per 19sqm is to be used in accordance with Hackney s Employment Growth Option Study 2010 available on the Council s web site at - th_options_study.pdf Source: HCA, Employment Densities Guide 2 nd Edition

74 15. Appendix 3 Areas of Play Deficiency 74